Neiger Flours owes $16,929 in taxes on taxable income of $61,509. If the firm earns $100 more in income, it will owe an additional $48 in taxes. What is the average tax rate on income of $61,609

E. 27.56 %

Explanation:

Firstly, we calculate the total tax for the $61609 income, after which we proceed to calculating the average tax rate using the formula as shown below.

Given that

Total tax = 16929 + 48 = 16977

Total income = 61609

Recall that

average tax rate = (total tax : total incom) * 100

Thus, we have

Average tax rate = (16977 : 61609) * 100

= 0.27556 * 100

= 27. 556%

= 27.56%